Airbnb vs Long-Term Rental Calculator
Compare short-term and long-term rental income to find the most profitable strategy for your South African property
Used to calculate gross yield
Airbnb inputs
Charged to guest per booking
Used to calculate number of cleans per month
Airbnb charges hosts ~3% of booking subtotal
Long-term rental inputs
Rates, levies, insurance, maintenance (applies to both scenarios)
Calculator Features
How to Use This Calculator
Enter your property value (used to calculate yield), then fill in the Airbnb inputs: nightly rate, expected occupancy percentage, cleaning fee per stay, average stay length, and the Airbnb host service fee (typically 3%). Choose whether you self-manage or use a management service (15–25% of revenue).
For the long-term rental side, enter the monthly rent you could achieve and your monthly property expenses (rates, levies, insurance, maintenance) — these expenses apply to both scenarios. Hit calculate to see a full side-by-side comparison including the break-even occupancy rate — the minimum Airbnb occupancy needed to match long-term rental income.
Key Metrics Explained
Gross Yield vs Net Yield
Gross yield = (annual rental income ÷ property value) × 100. It ignores all expenses and gives a top-line comparison. Net yield deducts all costs (Airbnb fees, management, rates, levies, insurance, maintenance) and reflects what you actually earn as a percentage of the property value. In South Africa, a gross rental yield of 7–10% is considered healthy; net yields typically fall to 5–7% after costs.
Break-Even Occupancy
The break-even occupancy is the occupancy rate at which Airbnb net income (after all Airbnb fees and expenses) equals long-term rental net income (after expenses). If your realistic Airbnb occupancy is above this rate, Airbnb is the better option. If you cannot achieve this occupancy in your area, long-term rental will deliver more predictable returns.
Management Fees
Self-managed Airbnb properties can earn 20–25% more than managed properties, but require significant time: guest communication, key handovers, cleaning co-ordination, and maintenance. Most South African Airbnb management companies charge 15–25% of revenue. Factor this in honestly — a 20% management fee on R12,000 per month in revenue reduces your Airbnb income by R2,400/month.
Worked Example
Naledi owns a 2-bedroom apartment in Cape Town's Sea Point worth R2,000,000. She is deciding between Airbnb and a long-term tenant.
Airbnb scenario: R1,200/night, 65% occupancy (19.5 nights/month), R500 cleaning fee, 3-night average stay (6.5 stays/month), 3% Airbnb service fee, self-managed.
Gross revenue: R23,400 + R3,250 cleaning = R26,650
Less Airbnb fee (3%): R800
Less expenses (rates, levy, insurance): R5,000
Net Airbnb: R20,850/month
Long-term rental scenario: R15,000/month, same R5,000 expenses.
Net LTR: R10,000/month
Airbnb is better by R10,850/month (R130,200/year) at 65% occupancy. Break-even occupancy is about 27% — Naledi only needs 8 nights/month to match the long-term rental income. However, the Airbnb scenario requires far more active management.
Frequently Asked Questions
Is Airbnb legal in South Africa?
Short-term rentals (STRs) are legal in South Africa, but municipal by-laws and sectional title rules vary widely. Cape Town introduced a short-term rental by-law in 2023 requiring registration for properties let for fewer than 30 consecutive days. In sectional title schemes, the body corporate's conduct rules may prohibit or restrict Airbnb — always check your scheme's rules before listing. Johannesburg and other municipalities are developing STR frameworks. As an owner, you may also need to register for VAT if your rental income exceeds R1,000,000 per year.
What are the tax implications of Airbnb income in South Africa?
Airbnb income is taxable in South Africa as rental income or as income from a business (depending on the level of activity). You must declare it in your annual income tax return. You can deduct expenses proportional to the rental period: bond interest, rates, levies, insurance, repairs, management fees, and cleaning costs. If your turnover exceeds R1,000,000, you must register for VAT. Keep detailed records of all income and expenses and consult a tax advisor, as SARS requires full disclosure.
What is a realistic Airbnb occupancy rate in South Africa?
Occupancy rates vary significantly by location and season. Cape Town's Atlantic Seaboard sees 70–85% occupancy in summer (October–April) and 40–55% in winter. Johannesburg (less seasonal) typically achieves 55–70% year-round in well-located properties. New listings typically start at 40–55% occupancy in the first few months while reviews build up. Use AirDNA or Airbnb's own "Airbnb Market Insights" tool to estimate occupancy for specific neighbourhoods.
What expenses can I deduct from my Airbnb income for tax in South Africa?
You can deduct expenses that are directly related to earning rental income: cleaning fees, platform commission, management fees, repairs and maintenance, bond interest (proportional to rental use), rates and taxes, levies, insurance, and furnishing depreciation. If the property is used personally for some periods, expenses must be apportioned. Improvements (capital expenditure) are not immediately deductible but form part of your base cost for CGT purposes.
What is the typical gross rental yield in South Africa for 2026?
Gross rental yields in South Africa vary considerably by location and property type. In 2026, typical gross yields are: Cape Town suburbs 5–7%, Atlantic Seaboard apartments 6–9% (Airbnb), Johannesburg prime areas 7–9%, Durban beachfront 7–10%. Net yields after all costs are typically 1.5–3 percentage points lower. A gross yield above 8% on a long-term rental is generally considered strong in the current market.